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Is Home Distillation Legal in Australia?
It’s one of the first questions people ask before purchasing a copper still, and understandably so.
The answer is straightforward, but there are a few important distinctions.
The short version is:
Distilling essential oils and hydrosols is legal in Australia. Distilling alcohol is subject to federal excise laws.
Understanding the difference will help you make informed decisions about purchasing and using a still.
Distilling Essential Oils and Hydrosols
If you’re interested in producing:
- Essential oils
- Hydrosols
- Floral waters
- Botanical extracts
- Aromatic plant distillates
you can legally do so in Australia.
Distilling non-alcoholic botanical products does not require an excise manufacturer’s licence, which is the licence required for producing alcoholic spirits.
This is the primary reason many people purchase copper stills for home use. Gardeners, herbalists, educators, cosmetic formulators and botanical enthusiasts use stills to explore the remarkable aromas and properties of plants without entering the world of alcohol production.
Whether you’re distilling lavender, rose petals, rosemary, lemon myrtle or native Australian botanicals, the activity itself is generally lawful.
However, there is an important consideration regarding the size of the still.
Is It Legal to Own a Still?
Yes, but the size of the still matters.
Under Australian excise legislation, stills with a capacity of less than 5 litres can generally be owned without obtaining permission from the Australian Taxation Office (ATO).
For stills with a capacity of 5 litres or greater, the ATO requires owners to obtain permission.
This requirement applies regardless of whether the still is intended for:
- Essential oil production
- Hydrosol production
- Botanical extraction
- Research
- Education
- Any other non-alcoholic purpose
The permission process is separate from an excise manufacturer’s licence and allows the ATO to maintain records of larger stills in circulation.
Many Alembic Alchemy customers obtain this permission when purchasing larger stills for botanical distillation.
If you’re considering a still of 5 litres or more, it’s worth reviewing the latest ATO requirements before making your purchase.
Distilling Alcohol Is Different
The legal position changes when alcohol enters the picture.
Distilling alcoholic spirits such as:
- Whisky
- Gin
- Vodka
- Rum
- Brandy
- Liqueurs
is regulated under the Excise Act 1901.
Under federal law, a licence is generally required to manufacture distilled alcohol in Australia.
This applies regardless of whether the alcohol is intended for personal use or commercial sale.
Unlike home brewing, which is permitted, spirit production falls under Australia’s excise framework because excise duty applies to distilled alcoholic beverages.
What About Home Brewing?
Home brewing is completely different from distillation.
Australians can legally produce beer, wine, cider and mead for personal consumption without requiring an excise licence.
The legal distinction occurs when alcohol is concentrated through the distillation process.
In simple terms:
| Activity | Legal Status |
|---|---|
| Brewing beer at home | ✅ Legal |
| Making wine at home | ✅ Legal |
| Making cider at home | ✅ Legal |
| Distilling alcohol | ⚠️ Subject to federal licensing requirements |
Commercial Distillation
If you’re planning to establish a commercial distillery, additional approvals are required.
This typically includes:
- An ATO Excise Manufacturer Licence.
- State or territory liquor licensing approvals.
- Compliance with local planning, safety and operational requirements.
- Payment of excise duty on spirits produced.
Australia’s craft distilling industry has grown significantly in recent years, and there is now a well-established pathway for commercial producers.
Selling Essential Oils, Hydrosols and Botanical Products
Many people eventually move from hobby distillation into small-scale commercial production.
If you intend to sell products you’ve distilled, additional requirements may apply depending on the product category and the claims you make.
For example:
- Cosmetic products have ingredient and labelling requirements.
- Food products must comply with food standards.
- Therapeutic products may be subject to additional regulation.
Depending on the product, regulatory oversight may involve organisations such as:
- AICIS (Australian Industrial Chemicals Introduction Scheme)
- Food Standards Australia New Zealand (FSANZ)
- Therapeutic Goods Administration (TGA)
Before selling products commercially, it’s worth seeking advice specific to your product category.
Why Most Alembic Alchemy Customers Choose Botanical Distillation
For many people, the attraction of distillation has little to do with alcohol.
The ability to transform home-grown plants into hydrosols, floral waters and essential oils is rewarding in its own right.
A basket of lavender becomes lavender hydrosol.
Fresh rosemary becomes a fragrant botanical distillate.
Rose petals become true rose water.
It’s a practical, creative and deeply satisfying way to connect with the plants growing in your garden.
Summary
| Activity | Legal Status |
|---|---|
| Distilling essential oils for personal use | ✅ Legal |
| Distilling hydrosols and floral waters for personal use | ✅ Legal |
| Owning a still under 5 litres | ✅ Generally permitted |
| Owning a still 5 litres or larger | ⚠️ Requires ATO permission |
| Brewing beer, wine, cider or mead at home | ✅ Legal |
| Distilling alcohol for personal consumption | ⚠️ Requires federal licensing |
| Commercial spirit production | ⚠️ Requires licences and excise compliance |
| Selling hydrosols or botanical products | ✅ Legal, subject to applicable product regulations |
Final Thoughts
Distillation laws in Australia are often misunderstood, largely because botanical distillation and alcohol distillation are treated very differently under the law.
For most home distillers interested in plants, hydrosols and essential oils, the process is straightforward and accessible.
The key is understanding the requirements that apply to your particular still and intended use.
If you’re unsure which still is right for your needs, or whether a particular still requires ATO permission, we’re always happy to help point you in the right direction.
Disclaimer: This article is provided as general information only and should not be considered legal advice. Laws and regulatory requirements can change. Always refer to the latest Australian Taxation Office guidance before purchasing, operating or disposing of a still.